Financial Statements of Waikato River Authority
for the period ended 30 June 2013
c) Interest rate risk
2013
Balance
Maturity
Effective
date
interest rate
Term Deposit
406,899 19/07/13
3.00%
406,899
2012
Balance
Maturity
Effective
date
interest rate
Term Deposit
764,883 21/08/12
4.50%
764,883
d) Sensitivity analysis
In managing interest rate risk the Authority aims to reduce the impact of short-
term fluctuations on the authority’s earnings by investing in short term deposits.
Over the longer-term, however, permanent changes in interest rates will have
an impact on profit. A decrease in interest rates of one percent would reduce
interest income by $4,068.99.
e) Credit quality of financial assets
The credit quality of financial assets that are neither past due nor impaired can
be assessed by reference to Standard and Poor’s credit ratings (if available) or to
historical information about counterparty default rates.
2013
2012
COUNTERPARTIES WITH CREDIT RATINGS
AA-
455,926
793,633
455,926
793,633
f) Classification and fair values
Other
Total
Loans and
amortised carrying
Fair
receivables
cost
amount
value
Note
2013
2013
2013
2013
Financial assets
Trade and other receivables 9
2,662
-
2,662
2,662
Cash and cash equivalents 8 455,926
-
455,926
455,926
Other financial asset
10
-
-
-
-
Total current financial assets
458,588
-
458,588
458,588
Total financial assets
458,588
-
458,588
458,588
Financial liabilities
Trade and other payables 12
-
8,477
8,477
8,477
Total current
financial liabilities
-
8,477
8,477
8,477
Total financial liabilities
-
8,477
8,477
8,477
Restoring and protecting the health and wellbeing of the Waikato River
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